Bank linked to Ponzi schemer Rothstein fined $6.5M by US

Published: Updated:

CORAL GABLES, Fla. (AP) – A bank linked to imprisoned Ponzi schemer Scott Rothstein has been fined $6.5 million by federal regulators for failing to report money laundering activity.

Coral Gables-based Gibraltar Private Bank and Trust Co. was fined $4 million by the Treasury Department’s Financial Crimes Enforcement Network for failing to file 120 suspicious activity reports connected to Rothstein’s scheme. The bank was also fined $2.5 million by the Office of the Comptroller of the Currency for similar failures.

Bank officials did not immediately respond Friday to a telephone call seeking comment.

Rothstein is serving a 50-year prison sentence for operating a $1.2 billion Ponzi scheme that revolved around investments in phony court settlements. A total of 29 people have been convicted in the scam, which imploded in late 2009.

Copyright ©2024 Fort Myers Broadcasting. All rights reserved.

This material may not be published, broadcast, rewritten, or redistributed without prior written consent.